Important Information About Exponential and Reciprocal Functions

Using a present value table, your calculator, or a computer program present value function, answer the following questions. Assistance is needed with the formula to calculate the problems:

Required:
a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%?

b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%?

c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 12 years, assuming that the account will earn 10% interest and the interest is reinvested?

d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, assuming that the account will earn 12% interest and the interest is reinvested"

Solution Summary

The solution provides step by step method for the calculation of interest rate under Exponential and Reciprocal Functions . Formula for the calculation and Interpretations of the results are also included.

Identify the important characteristics of an exponential function. Explain the difference between the graph of an exponential growth function and an exponential decay function and give an example of each type of function.

1. Identify an exponential function. Give an example of this function related to the business environment.
Assignment Notes
Discussion Question 1: If we look at the formula to calculate the dollar amount of a $1 we put into savings today, we see that it is fv = pv*((1+i)^n). The variables are fv = future value, pv = pre

The Rule of 70 is a mathematical approximation that calculates how long it takes for a value to double. Examples are as varied as finding how long it takes the Gross Domestic Product to double, how long it takes a savings account to double in value, or how long it takes the price of a product to double due to inflation. The Rule

Identify the important characteristics of an exponential function. Explain the difference between the graph of an exponential growth function and an exponential decay function and give an example of each type of function.

I need help understanding the forms and characteristics of exponentialand logarithmic.
1. What are the general forms of function for exponentialand logarithmic?
2. Please show a simple example of each exponentialand logarithmic functions
3. What are at least four characteristics of graphical representation for each e

See attached file.
Suppose that X_i has an exponential distribution with a parameter lamda_i > 0. How do a series of exponential distribution functions with distinctive pairwise of random variable X and lamda (ie X_1 and lamda_1, X_2 and lamda_2,..., X_n and lamda_n) be transformed into a beta distribution function?
Note:

Write an equation using the following information:
Each represents an exponential function with base 2 or 3 translated and/or reflected
1) (-3,0), (-2,1), (0,7)
Equation of horizontal asymptote: y=-1
2) (-1,3), (0,4), (-3,-3)
Equation of horizontal asymptote: y=5